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A.S. Watson announces
a £á534 million cash offer on shares of Europe's
leading perfumery chain Marionnaud
Deal
makes A.S. Watson world's largest health &
beauty retailer
Hong Kong (14 Jan 2005)
A.S.
Watson, the retail and manufacturing division
of Hutchison Whampoa Limited, today announces
a cash offer on Marionnaud
SA shares amount to £á 534 million. The
offer documents have been filed with the French
Stock Exchange in Paris today. Completion of the
transaction will bring A.S. Watson's health and
beauty store number to over 5,662, making it the
world's largest retail company in the sector.
Marionnaud
is the largest perfumery and cosmetic retailer
in France with a strong service offer. Today,
the chain has 1,226 stores operating in France
and 14 other countries. A.S. Watson Group is not
currently present in France, nor in most of the
other key markets of Marionnaud including Italy,
Spain, and Austria. Marionnaud therefore appears
as a natural fit for the Group's continuing expansion
strategy in Europe. Besides, it is the Group's
strategic goal to expand its business in the perfumery
sector. As a result, A.S. Watson contacted Marionnaud
management in order to explore the possibility
of a combination of the two groups, on a friendly
basis.
A.S.
Watson's main aim for the offer is to revitalise
Marionnaud by leveraging its brands and its retail
network and by integrating Marionnaud into its
international portfolio. The arrival of A.S. Watson
is expected to bring benefits to the combined
international network of both companies, creating
synergies in both sourcing and logistics.
Mr
Marcel Frydman, Founder and President Directeur
Général (CEO) of Marionnaud, as
well as Mr Gérald Frydman, Directeur Général
Délégué (Managing Director),
and Mrs Lydie Frydman, have agreed to tender their
Marionnaud shares, i.e., approximately 20% of
the share capital.
Following
the acquisition, the current management team will
keep its day-to-day responsibilities.
CAPE
Holding (the investment arm of the Crédit Agricole
Group) agreed to tender its Marionnaud Shares,
i.e., 8.9 % of the share capital.
Commenting
on the offer, A.S. Watson Group Managing Director
Mr Ian Wade said,
"I
am particularly proud to announce this offer as
I believe in the strong potential of Marionnaud.
The brand is known to everyone in France and is
very symbolic. The new partnership targets to
further expand the chain across countries in Europe,
and also look at opportunities of bringing the
concept to Asia.
The
Group's continuing strategic aim is to expand
our footprint in Europe and Asia. France is the
second largest economy in the Eurozone, and the
market prospects are extraordinary. The opportunity
to invest in Marionnaud offers us an excellent
opportunity to enter the French market and markets
where Marionnaud already operates. It is also
our wish to expand the Group's business in the
perfumery sector. The combined operation will
succeed with a strong commitment of both groups
towards a shared future."
Commenting
on the offer, President Directeur Général
(CEO) of Marionnaud, Mr Marcel Frydman,
said:
"I
am delighted to support our brand new start with
A.S. Watson which is one of the largest retailers
in the world. Together, we will ensure the best
means to develop Marionnaud in France and in the
world."
Description
of the offer
The
proposed offer price per Marionnaud share is £á
21.80, implying a premium of 37.1% over January
7, 2005, closing price.
The
proposed offer price per OCEANE is £á 69.74, implying
a premium of 21.8% over January 7, 2005, closing
price.
The
offer values the company about 9.7 times 2003
published operating results.
The
offer is conditional on obtaining over 50.01%
of the issued share capital.
A.S.
Watson estimates that the offer should be completed
during the first quarter of 2005.
This
is an offer co-presented by UBS and Calyon
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About
A.S. Watson
A.S. Watson (ASW) is one of the longest established
and best-known trading names originating in Asia.
With a history dating back to 1828, ASW has evolved
into a truly international retail and manufacturing
business with operations in 20 markets across
Asia and Europe.
In
Asia, A.S. Watson's health and beauty chain operates
under the name of Watsons Your Personal Care Store,
which at present has over 950 outlets in 9 markets.
In Europe, A.S. Watson's current retail network
comprises of 7 health and beauty retail brands,
with over 3,500 stores in 10 countries:
| Name
of Health & Beauty Chain |
Countries/Markets
where it operates |
| Watsons |
Hong
Kong, China, Taiwan, Macau, Singapore, Malaysia,
Thailand, Philippines, Korea |
| Kruidvat |
Netherlands,
Belgium |
| Trekpleister |
Netherlands |
| ICI
PARIS XL |
Netherlands,
Belgium, Luxembourg |
| Rossmann |
Germany,
Poland, Hungary, Czech Republic |
| Superdrug |
United
Kingdom |
| Savers |
United
Kingdom |
| Drogas |
Latvia,
Lithuania |
A
wholly-owned subsidiary of Hong Kong-based multinational
conglomerate Hutchison Whampoa Limited, ASW operates
a total of 14 retail brands with over 4,800 stores
spanning from health & beauty chains to its
food, electronics & general merchandise, and
airport duty free. It is also an established player
in the beverage industry, providing a full range
of beverages from bottled water, fruit juices,
soft drinks and tea products to some of the world's
finest wine labels via its international wine
wholesaling and distribution network. ASW employs
over 64,000 people worldwide and in 2003, its
reported turnover was HKD 63 billion.
About Marionnaud
In 1984, Marcel Frydman opened the first Marionnaud
store and ever since the group has registered
an exceptional growth. Indeed, between 1986 and
1992, the company bought a large number of local
perfume retailers and independent outlets.
Owning
48 outlets in 1996, the company acquired "Bernard
Marionnaud," which at the time was having
difficulties. During 1997, the company registered
a spectacular recovery. After this success, Marionnaud
announces an IPO for the secondary market in order
to raise enough funds for its development. As
a result, the group acquires more than 1,100 outlets
over the period of five years.
In
2002, the group continues its European growth,
particularly in Italy, Spain and Portugal and
becomes the French leading perfume retailer, second
in Europe with 1,226 outlets, of which 565 in
France (5,400 employees) and 661 abroad (3,500
employees). Today, Marionnaud operates in France,
Switzerland, Italy, Austria, Spain, Portugal,
Poland, Hungary, Czech Republic, Slovakia, Romania,
Bulgaria, Morocco, Israel, and Russia."
Since
1991, Marionnaud entered the primary market and
the Frydman family is still owning 21.8% of the
shares and 34.7% of the voting rights.
In
2003, the turnover of the company amounted to
£á 1.1 billion. At the end of the first-half 2004,
it reached £á 515 million.
Website:
www.marionnaud.com
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Ends -
Media
Enquiries :
A.S.
Watson Group
ANNA LO
Tel : (852) 6334 3391
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